TAPE READING (chat room cont.)

tape reading

  • go long at bid

    Votes: 19 20.9%

  • go long at offer

    Votes: 38 41.8%

  • place short at bid (bullet or conversion) reg sho.

    Votes: 17 18.7%

  • place short at offer

    Votes: 17 18.7%
  • Total voters
    91
  • Poll closed .
could someone maybe tell me what people mean when they say look for "uptick bids" if you're longing a stock.... and how exactly can i decipher the meaning behind a stock through looking at the prints + the price of the bid/offer? Like i hear noticing where the prints are made are important... whether it's being printed at the offer price, at the bid price, closer to the bid price, closer to the offer price... etc

could someone give me a lesson on how to read the correlation between these two things a little better?
======

also if anyone could explain a few of the things i posted in the previous post i would really appreciate it.
 
Uptick bid: 50.27 X 50.29 10X20, 2000 prints at .29, new quote
50.29 X 50.33 15X7

The offer was lifted at .29 (which was an uptick), and the buyer is now bidding .29.

I call it "bidding the plus, or bidding on the plus"

Quote from chiefraven:

could someone maybe tell me what people mean when they say look for "uptick bids" if you're longing a stock.... and how exactly can i decipher the meaning behind a stock through looking at the prints + the price of the bid/offer? Like i hear noticing where the prints are made are important... whether it's being printed at the offer price, at the bid price, closer to the bid price, closer to the offer price... etc

could someone give me a lesson on how to read the correlation between these two things a little better?
======

also if anyone could explain a few of the things i posted in the previous post i would really appreciate it.
More...
 
thanks steve, but what's the rule and definition of an uptick bid? the 50.29 bid is the uptick bid right?


doesn't uptick bid just means the bid following right after the print is higher than the printed price?

like



50.30 x 50.33 15x17
^ 50.29 20000

so in this case 50.30 is the bid on the uptick (the uptick print at 50.29)

???
 
Well, thats an even more bullish sign if he bids .30 as opposed to .29. I guess that qualifies as an uptick bid, I guess I was describing bidding on the plus.

Quote from chiefraven:

thanks steve, but what's the rule and definition of an uptick bid? the 50.29 bid is the uptick bid right?


doesn't uptick bid just means the bid following right after the print is higher than the printed price?

like



50.30 x 50.33 15x17
^ 50.29 20000

so in this case 50.30 is the bid on the uptick (the uptick print at 50.29)

???
More...
 
cool. thanks for the help Steve.

Do you think you could maybe go over a few things you try to spot when you're reading the tape... like if the bid and offers are at a certain price, and the prints come off at a certain price, what does this print indicate... and how the bid and offer changes and what sort of clues they give you in different scenarios?
 
Honestly, it would take way too long to go over how I trade NYSE stocks. The best thing for you to do is watch and learn everyday, go over charts and the tape every day/night of the stocks you trade and figure out how the moves happened by recreating the day from the tape. See what led up to the move (either up or down) and figure out where good entries were. Doing this everyday will help you build trader intuition which is vital for success. There is no substitute for personal experience.

Re-read all of Mavericks posts, they are gems for trading NYSE stock. If his posts were around when I first started, i am sure it would have shaved a month or so off my learning curve.

Quote from chiefraven:

cool. thanks for the help Steve.

Do you think you could maybe go over a few things you try to spot when you're reading the tape... like if the bid and offers are at a certain price, and the prints come off at a certain price, what does this print indicate... and how the bid and offer changes and what sort of clues they give you in different scenarios?
More...
 
I'm trying to learn tape reading as I prepare to day trade ES soon.

Here's my newbie question : if the bid becomes the ask price does this typicaly mean the price will moves up?

thanks.
 
I know one of the main thing tape readers need to know are the bid/ask prices, prints, and the sizes and how they correlate with each other.

One question i am a little confused about is this:

usually if the stock is going up it looks something like this:

^ 32.00 200
31.99 NYSE 32.00 1x2

which means somone took 200 shares from the person selling that 200 shares at 32.00. This is the most common case 'cuz the buyer buys it at the offer price.

However, sometimes there are times when it looks like this:

^ 32.88 200
32.88 NYSE 2.90 8x2

in which the uptick print happens at the bid price and not the offer price... how can this be? how is he getting that 200 shares at 32.88 when people are selling at 2.90?

the other scenario is:

^ 32.78 200
32.77 NYSE 32.79 2x2

when the uptick print is printed at a price between the bid/ask.


Now from my experience, i know that most of the time when the uptick print is going off and it's of shares equal or less than 1000 shares, it is usually being printed at the offer price (scenario 1) since most often time it's an NX order, and with NX order you can only buy from the offer price.

but if this is true how come i see (scenario 2 and 3) happening all the time as well?

Finally, i know that a lot of times with shares greater than 1000 shares, meaning it's probably a market order, it's usually not being printed exactly at the offer price because the specialist has the control to print it at whatever price he wants.
===================

Anyway, I was wondering if anyone could help clarify this in detail to me, and perhaps show me how all these work and what the meaning behind the changes in the pritns and the bid/ask prices in different scenarios.
 
Quote from xxxskier:

I'm trying to learn tape reading as I prepare to day trade ES soon.

Here's my newbie question : if the bid becomes the ask price does this typicaly mean the price will moves up?

thanks.
More...

sometimes it does, sometimes it doesn't.

when looking at the bids and the asks in the ECN and the NYOB you have to see what is going to offer less opposition for the stock to move. You have to realize that stocks are lazy and they prefer to move against the point of less resistance.

If you see more bids than asks, is more probable that the stock will move up. If you see more asks than bids is more likely that the stock will move down. But before taking a decision based on the bid/ask situation I would suggest you to look at the chart. Don't look for technical indicators or jap candlesticks, that's bullXXX, find out what a hell the stock is doing, you don't need an indicator to know if a stock is going up, down or nothing. If you see big bidders, few people selling, stock moving up with the market moving up that's a beautiful thing to see, which is as nice as to see lot of people selling a stock falling with the market in a down trend.
 
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